Rwanda has signed a $400 million deal to produce bottled gas from Lake Kivu, which emits dense clouds of methane and is known as one of Africa's “Killer Lakes”.

The seven-year deal, signed on Friday, was announced on Tuesday will be a project by Gasmeth Energy, owned by US and Nigerian businessmen and Rwandans, and is set to suck gas from the lake's deep floor and bottle it for use as fuel.

While speaking to Reuters,Clare Akamanzi, chief executive of the Rwanda Development Board, says that the bottled methane would help cut local reliance on wood and charcoal, the fuels most households and tea factories use in the country of 12 million people.

“We expect to have affordable gas which is environmentally friendly,We expect that people can use gas instead of charcoal, the same with industries like tea factories instead of using firewood, they use gas. It's part of our green agenda.”she said

Gasmeth Energy plans to build a gas extraction, processing and compression plant to sell methane in Rwanda and abroad.

The deep waters of Lake Kivu, lies in the volcanic region on Rwanda's border with the Democratic Republic of Congo, emit such dense clouds of methane that scientists fear they might erupt, killing those living along its shore.